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Friday, 05 December 2008

Mini-budget won't save NSW credit rating: Treasury

9/10/2008 7:12:00 PM.  | Heidi Tiltins
Treasury bosses concede the state will still be on credit-watch, even after the mini-budget is handed down next month.

Ratings agency Standard and Pooles put NSW on credit watch after the NSW government's electricity privatisation plan failed to pass parliament.

A new scheme is still going ahead but taxpayers will now be forced to fork out for upgrades to the network which would have been funded by the private sector.

It means a number of projects are still in doubt, with the government needing more financial flexibility.

Treasury boss John Pearce has told an upper house inquiry the mini-budget is vital to ensuring the state's triple-a credit rating but financial security won't be immediate.

"The mini-budget, in an of itself, will not be sufficient to have the negative outlook removed."

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